UP PF/ESI Reimbursement Scheme
Government of Uttar Pradesh · Central government
Uttar Pradesh reimburses PF and ESI employer contributions for up to three years for eligible startups.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 3 years
About this scheme
The UP Startup Policy includes a reimbursement scheme for employers' PF and ESI contributions, operated by the Uttar Pradesh State Government. Its purpose is to encourage startup growth and the creation of formal jobs within the state. By covering a substantial share of social security payments, the scheme lowers running costs for early-stage companies, freeing up funds for innovation, product development and team expansion.
Startups that hire formal employees and provide them with Provident Fund and Employees' State Insurance benefits are eligible for support under this programme. For young startups in particular, the reimbursement offers financial relief during their initial growth phase. Through this measure, the government signals its backing for the startup ecosystem and makes formalising a workforce in Uttar Pradesh more appealing to businesses.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Maximum age of business
- 3 years
- Where the business may be based
- Uttar Pradesh
- The startup must be registered under StartinUP and meet the eligibility criteria for that registration. - The employee's contribution must be below INR 21,000 per employee. - The company must have been in operation for no more than 3 years as on the date of application.
How to apply
1. Go through the UP Startup Policy guidelines and eligibility conditions in detail, in particular Section 7.A.2.x, which can be accessed on the Invest UP website. 2. Confirm that your startup holds 'Eligible StartinUP registered startup' status and satisfies every other stipulated requirement, such as the limits on company age and employee contribution. 3. Assemble the full set of documents covering your startup's registration, employee particulars, and evidence of Provident Fund (PF) and Employees' State Insurance (ESI) contributions paid. 4. File your reimbursement claim either through the portal specified for this purpose or with the authority that administers the UP Startup Policy incentives. The policy's implementation guidelines set out the exact application portal and the procedure in detail. 5. Wait for the State Government or its nominated agency to verify and approve your claim, after which the reimbursement is disbursed.
How applications are assessed
Claims under this reimbursement incentive are assessed chiefly on how closely an applicant meets the eligibility conditions set out in the UP Startup Policy. Verification covers the startup's 'StartinUP' registration, how long it has been operating, and the particulars of its employee PF and ESI contributions. Once the State Government or its nominated implementing agency has examined the documents and confirmed compliance, the claim is approved and taken forward for processing.
Frequently asked questions
What is the benefit offered under this scheme?
Eligible startups registered under the 'StartinUP' programme can claim reimbursement of the employer's Provident Fund (PF) and Employees' State Insurance (ESI) contributions paid by them.
For how long can a startup avail this reimbursement?
The reimbursement runs for three years without a break, counted from the date the eligible startup claims the benefit.
What are the key eligibility criteria for startups to apply?
To qualify for the reimbursement, a startup must be registered as a 'StartinUP' entity, have an employee contribution below INR 21,000 per employee, and have been in operation for no more than 3 years as on the application date.
What is the primary purpose of this reimbursement scheme?
The scheme gives eligible startups in Uttar Pradesh financial relief on their mandatory social security contributions, with the aim of encouraging formal employment generation in the state.
Is there any equity component or repayment obligation associated with this reimbursement?
No. This is a direct reimbursement scheme from the State Government, and the startup is not required to give up any equity or repay the amount received.
Sectors
- Pf Reimbursement
- Esi Reimbursement
- Employment Incentive
- Uttar Pradesh
- Startup Policy
Details last verified on 14 September 2026. Source: the issuer's published information.